St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-06-25
A Tremendous Raid Made on the Stock
Market by the Bear Com
binaiiel.
Manhattan Elevated Has the Wind Com-
pletely Knocked Out of The Bal
loon Prices.
The Scare, However, but Temporary,
and Confidence Restored Before
the Evening.
Jay Gould Shows Up and Puts His
Shoulder to the Wheel---An
Interview.

NEW YORK, June 24.-One after an
other the speculative bubbles have
burst. Last week it Was coffee. then
Wheat, and to-day stocks went kiting.
Ii has been day filled with rumors and
intense excitement. In the early deal
lngs, when the decline in staunch Sc
curieties began to get good headwav.
brokers rushed around in FRENZY of
fear, not knowing which way to turn.
Money became tighter and tighter
and the raid upon the dimin-
lshing surplus reserve fund
increased. Suddenly the banks became
suspicious OF Inflated Manhattan ele-
waited stock, and refused to loan on IT,
except on wide margins. This neg
Withdrawn the stock took terrific tum
pie and pandemOnium reigned. Even
tne personal assurance of CYRUS w.
Field that the stock was as good as ever
was insufficient to save it. 1t was n
colossal smash, and every commercial
center from here to San Francisco was
soon tangling the news, but it was
SHORT SCARE
ana fortunately not severe one. for
With all the fuss not failure is recorded.
Inc experience is not unlike the one
Whlch the street passed through Oh Dee.
ID last, although it stood the beating
much mt better to-day than it did then.
Inc causes which led to the decline then
and now were, however. of vastly
different character. In each case
Tightening of money rates
was prominent factor. That the
recent wheat panic and ugly disclos-
ureS IN connection with the Fidelity
bank failure, aggravated by uDwar-
ranted sensational rumorS. was reSDon-
Sible for tO-day's exciting events. is be-
yond dispute. When it is hard to OBJ
tain money brokers' call on customers
ior margins as measure of self pro-
tection, and 1t is easy for any combina-
tlon with capital and nerve to shake out
the weak holders. That such a co.nbina-
tion mas been at work several days there
Is little doubt. The big slump in Man
haitian to-day, coupled with rumors in
duStrlouSly circulated of quarrel be-
tween Gould and Sage. was lust what
they had been waiting for. Anticipat-
ing rush TO sell long stocks, they made
desperate onslaught on the whole
list, offering stocks down anywhere
from "a to points at time. For an
hour or more holders were
PANIC STRICKEN
and an avalanche of stocks came on the
market. This state of things continued
until absurd rumors about Gould. one
OF them that he was dead, were ex-
ploded. Then the market bobbed
around for while until it began to re-
act. There were several sharp rallies at
the close. Ihe final figures were in most
Instances the best of the afternoon.
Some attribute the real cause of the
wreck in price this morning to i'll feel
ing between certain Wall street mag
mates. The impression was quite
general after the situation had been
fully discussed that the Gould interest
was largely instrumental in bringing it
about, and the remarkable drops in
Gould stocks seemed to support this
view. What the motive actuatipg
the attack may have been time alone
Will tell, but it is probably pl Preliminary
TO some important deal that necessitated
the wedding out Of a lot of bulls and ac-
cumulatlon of cheap stock at the same
tune. II this was the intention, the
operation was
BIG SUCCESS.
but conservative people incline to the
opinion that while the speculation NAV
be feyerlsh few days no recurrence OF
,to-day's break need be apprehended.
Inc following review was issued bv
Henry Clear Il Co. to-day: "The surge
in the markets should not have been IN
expected, as every day for fortnight or
more past we are on record as predict
ing Just such a setback as Wall street
has now met with. The effect will be
beneficial, however-as it will very likely
prevent more serious settlement. If
the day Of reckoning had been
deferred to the crop-inoying season
instead OF to-day, further trouble must
have resulted here and elsewhere. The
stock market. not unlike that of the
wheat and coffee market, is likely to be
more or less daZed for several days to
come, as natural sequence Of to-dav's
shock. occasioned by the heavy losses
which innumerable operators have met
with. There are too many cripples. we
fear, left on the fie4d for the survivors
to watch over at quick, active pace on
the way to recaperation. Still Wall
street is going to stay just where it is.
and will survive this shock and witness
many ups and downs in the future.
The way to make money is to catch the
fluctuations. There has undoubtedly
been for long time past lack of fiuc-
tuations, showing
AN UNwARY MARKET.
Its sluggishness has been due to that
fact. When stocks wont go up the next
III.
They have just gone down. Vice
President Sykes, of the Northwestern.
said he did not see any reason
for the furry. The Northwestern
and Omaha Railroad companies
were large lenders of money.
up in the millions. and never exacted
over 6 per cent. Northwestern was. he
said, disbursing this week 81, SOC. 900.
The dividend on Northwestern is due
tomorrow. but the company was antici-
pating its payment and had, up to 1
O'Clock, paid on account thereof
100000. Wall street was puzzled to
account for the fact that such a
great decline could occur without
dragging down some of the bull houses
which have been carrying large lines of
stocks, but this is explained by reports
that Gould. Field, Vanderbilt and the
Philadelphia capitalists had taken up
stocks which were in weak hands and
relieved the holders of the necessity of
sacrificing them. Cyrus w. Field, one
report said, had taken up 1000, 900 of
Manhattan stock.
JAY GOULD.